12 things to think about when you buy travel insurance

Experience of others will steer you straight

Some experts offered anecdotes and advice to guide consumers through the purchase of travel health insurance:

•Is this trip necessary? Seniors should really not travel with medical conditions that are not considered “stable,” says Bob Dickson, of Bob Dickson Insurance Services, Carleton Place. They could need medical attention that would not be insured outside of Canada. Why take the financial risk just to have a holiday?

•Not all advice is good. A man came to Ron Singer, associate broker, Megacorp Insurance Agencies Inc., Mississauga. He was taking medication for a heart condition and having regular tests. Yet, says Singer, “a salesman who was not licensed to sell insurance told him not to worry; his heart attack was five years ago. This advice was contrary to the application form.” Other consumers do not know how the stability period on health conditions in policies affects coverage, or to report a change in health condition to make sure their coverage will not be jeopardized. They do not know a 1-800 medical help line in Canada will not work in most other countries.

•Look in your medicine chest! “Usually when I start by asking new clients if they have any pre-existing conditions, the answer is, `No’,” says John Wilson, M. Butler Insurance Brokers Ltd., Niagara Falls. After asking more questions, he hears answers such as this: “I’m only on medication for high blood pressure;” “I only have a stent,” and “I only have atrial fibrulation (fast and irregular heartbeats).”

•Is there a doctor in Shangri-La? Snowbirds considering travel to exotic or remote destinations need to consider such things as language barriers, the quality of local medical care, the availability of transport to another medical care facility, and the services and benefits your insurer can offer to help you cope with an emergency, says Angela Gordon, RBC Insurance.

•Read what you purchased early on! Read your insurance policy before the deadline for rescinding it (usually within 10 days), says Milan Korcok, editor of TravelinsuranceFile.com, Florida. This is particularly important when purchasing coverage over the phone or Internet. “A sales agent may say you’re covered for everything, but you’re not,” Korcok says. No travel health insurance is a match for what the government provides while you are at home in Canada. “Every policy will have restrictions, conditions and limitations. There will be no coverage if you do not disclose all relevant health information.”

•Questions, questions, questions. A client with pre-existing medical conditions did not renew or extend a 60-day travel insurance policy before it expired, says Robin Ingle, chairman Ingle International. “To find him coverage, we needed to make sure nothing had happened to change his eligibility. The client became angry, and did not answer our health questions until two days later when a manager called.” He was still angry when Ingle called later. He said his wife had bought travel insurance at a bank, without having to answer such questions. But Ingle knew the plan’s restrictions. “He would not be covered for a medical emergency. We wanted to make sure he would be covered.”

•When you need to stay longer. “When you want to extend a stay, you need to ensure you've purchased top-up coverage,” says Christine Raymond, Avalon Actuarial Consulting Inc. Not all plans allow top-ups, and some that do, may require additional medical underwriting. Coverage can generally be extended if a delay is beyond your control, such as a hospitalization, flight delay or natural disaster, typically for three to five days beyond the delay at no additional charge.

•Prices are up, prices are down. Shop around each year! A couple in their mid 70s wanted annual, 30-day, multi-trip policies they could top-up for longer trips, says Ken MacCoy, registered health underwriter, Edge Marketing Group, Chilliwack, B.C. Last year, MacCoy found policies for $570 with the same coverage that had cost them $721 the previous year. This year, a third company was cheaper. It was charging $451, down from $700 last year.

•Make sure you qualify! The out-of-country coverage that comes with group medical plans is much less stringent on pre-existing medical conditions than individual travel insurance, says Michael Sanderson, group benefits consultant, Programmed Insurance Brokers, Elmira. But an employee must be working a minimum number of hours to qualify, or their claim could be denied for fraudulent participation.

•In case you have to cancel. Travel has been disrupted in the past year due to volcanic ash from Iceland, an earthquake in Haiti and the H1N1 virus, says Christine Raymond, Avalon Actuarial Consulting Inc. This should highlight the value of trip-cancellation protection, and the importance of checking for travel advisories on Department of Foreign Affairs website before buying travel insurance, or leaving Canada.

•Proving when you came and went. John Wilson, M. Butler Insurance Brokers Ltd., Niagara Falls, says he urges clients: Keep toll, gasoline or bank receipts to prove when you leave and return to Canada in case you need to make a claim! Notify the insurer’s emergency assistance line of a potential claim and file a claim form as soon as possible! Not all insurers increase rates or restrict coverage at the same ages, for a single blood pressure or water pill, trip to the doctor, or for a change to a newer medication. “But some do, and that’s important to know,” Wilson says.

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